A Family’s Business
Alan Skoog and his clan have worked for more than 37 years to
grow their company in two rural Midwestern towns.
By Bob Warde
Editor, Pro Magazine
October 2, 2006
Business has changed a lot for Skoog Landscape & Design
since Alan Skoog (pronounced Sk-oh-g) founded it in 1970. Back
then, he operated out of a room in his home in Chadwick,
Illinois, a town of fewer than 600.
Fresh from a nursery and landscape business that, as Alan
says, was a partnership that blew up, he and his wife, Mary Ann,
had no money to relocate, so they started their business. Alan
knew at the time that he wanted to run his business right –
to be a businessperson first and a landscape person second
– so he hired a consultant. The work of Frank Ross, of
Ross-Payne and Associates, is still with the company today. Frank
helped Alan and Mary Ann set up their systems, including their
accounting system and chart of accounts. Mary Ann does all the
bookkeeping and maintains those accounts.
From Humble Beginnings
At the time, Alan had one part-time employee. Later the
business grew to two rooms in the family home and then a trailer
outside. His offerings consisted of design/build services and
plantings. It didn’t take long for Alan to start planning
for growth. In 1971, he added hydroseeding, purchasing one of the
first hydroseeders in Northwest Illinois. From there, it was a
steady expansion of the company’s offerings, including
irrigation, retaining walls, pavers, stamped concrete, water
mains and a Christmas Décor franchise.
Though he had gone with Alan on jobs since he was about four
years old, Andy joined the business full time in 1988 after
earning his degree in landscape construction from Mississippi
State University and summer internships with landscape companies
in Florida and Wisconsin.
“Dad’s philosophy was that when we went away to
school, we couldn’t come back and work in the family
business. We had to work somewhere else first. I worked in
Florida for one semester and then the next three intern periods
at Lied’s Nursery in Sussex, Wisconsin,” Andy
says.
Now that the trio has been working together for nearly 20
years, the Skoogs believe they’ve created a significant
competitive advantage with the variety of services they now
offer. “A lot of our advantage is that we’re
design-build. We do very little bid work, so to a certain degree,
we can design a landscape without regard to having to find subs,
we have most all needed capabilities,” Andy says.
It took awhile to acquire or develop the various services, but
now the company has been hired to do work all across Northern
Illinois and the Midwest, including Minnesota, Iowa and
Wisconsin. “We now offer the full spectrum, whereas before,
we had to pull in a concrete guy or an irrigation contractor.
Now, we’re a one-stop shop. Though not all of our
customers use all of our services, we can manage the entire
project and provide so much more to our clients,” Andy
adds.
He adds that homeowners are weary of scheduling more than one
contractor, initiating contact and soliciting bids. “By
then, especially those building new homes, people are so
frustrated with the whole process. We have a lot of appeal to
customers because, by that point, they’re so frustrated
with building that they’re happy to have a one-phone-call
place. There’s no one in this area that can offer the whole
spectrum of services that we can,” he says.
Some Luck Was Involved
Not all of the company’s service additions were
meticulously planned. Skoog Landscape got involved with water
mains, now about 15% of the business when counted with
excavation, by accident. After buying the Sterling location in
1992, the Skoogs kept the seller on as an employee. While Alan
took a rare fishing vacation, the new employee took a job making
a street repair for the local private water company. The move
wasn’t looked on favorably.
“Alan was really unhappy with us when we started bidding
on street patches, because his thought was that we’d be
running around patching all these little 4 x 4-foot holes. He
wondered how in the world we could ever make money on
that?” Andy says.
It turned out to be a good move because the water company
liked the quality of the work so much, it asked Skoog to bid on
their water main installation work. “Andy watched the water
company crews work and he learned how it was done. We started
bidding on projects and have been installing them since,”
Alan says.
Alan’s apprehension over doing the street patches was
alleviated after a two-week rainy patch meant that about all they
could do was the patching.
Since the water main installation became such a large part of
their business, the Skoogs began investing in heavy equipment
including bulldozers, excavators, large trucks and a directional
boring machine. They also leverage the equipment by using it for
other excavation and installation work.
The Skoogs also learned the value of bringing work in-house
while contracting to install water mains. “We initially
were subbing out the heavy work because small businesses to avoid
the capital outlay. Our subcontractor was terrible and we nearly
lost the water company as a customer. We got rid of him, bought
our own machinery and started doing the work ourselves. Subbing
out work sounds good to bankers, but in reality it’s a lot
harder to implement. We learned our lesson on that,” Andy
says.
Learning Has Helped
Having the knowledge and capability to add a certain service
has also been a determining factor. Two things contributed to the
company’s ability to add paver installation, for example.
Andy spent three summers learning how to install them while
working for Lied’s Nursery. After joining the family
business, he was able to transfer the knowledge to his crew
members and the company could begin offering the service in
earnest. “I learned how to install paving brick because I
did so much of it. When I came to the business full time, that
was another facet we could offer,” Andy recalls.
Another inspiration for additional services are the trade
shows and association seminars the Skoogs attend. “The
retaining walls and pavers are among the things we’ve
observed in the industry and were happening in the big towns.
Because of the associations we belong to and the meetings we go
to, we learn about those things and bring them home with
us,” Alan says.
Getting out to conventions and seminars is good for the
company, since working in rural areas can put them out of the
loop, he adds. “We need to see what’s going on in the
rest of the world because we’re so isolated. Operating here
in our rural area, it’s very easy not to develop and grow.
We need to bring our clients the additional things the rest of
the world is enjoying and it’s not acceptable for us not to
offer things because we don’t know them.”
Good customer service has been key to the Skoogs’
success. “In a small town like this, if you don’t
take care of the customer, you’d never have stayed in
business since 1969,” Andy says.
Alan has operated the business with a philosophy he learned in
college. “I went to the University of Nebraska and all of
my roommates were ranch people. One of their grandfathers had a
theory: ‘Life’s too short to hassle.’ This is
one of the things I try to run my business with. If we have to
take something on the nose, even though it may or may not be our
fault, we take care of it with that thought in mind.”
While Andy and Alan appreciate what creating a one-stop shop
has done for the company, Andy also appreciates what it means for
himself. “A good thing about working here is the variety of
work you get to do. When I worked in Wisconsin for the summers,
it was for a great company, but all I did was paving brick. After
three summers of that, you get a little sick of doing the same
thing. With the large number of things that we do, it’s
kind of nice to do the various tasks,” he says.
Keeping the Books is a Challenge
For Mary Ann, tracking the intricate jobs can be a challenge.
“We have a fairly complex system and the cogs have to come
together. Our employees have to fill out time sheets to provide
information for our database and those time sheets are fairly
complex, too. Some of the employees aren’t too detail
oriented and so that’s a challenge, making sure it’s
not garbage in and garbage out. If they’re putting things
down without being somewhat close to reality, then all of our
time is wasted,” she says.
She admits that she is much more attuned to the expense side
of the business than either Alan or Andy are since she pays all
the bills and everything crosses her desk. Not knowing what goes
on in the field sometimes limits her perspective, she says.
“Sometimes I have to step back when I wonder how something
could happen if we spend too much time on a job. At times Alan
and Andy have to give me a reality check because I’m not
out in the trenches. I don’t understand as much as I should
about how disasters happen sometimes and then we have to do
things to keep our customers or employees happy. I’m just
looking at how much something costs because that’s the side
I see.”
Having a family business has been rewarding for the Skoogs,
though there are some aspects that have been difficult.
“Mary Ann doesn’t care for the number of hours Andy
and I put in compared to the compensation we’re given. My
work day starts at 7 a.m. and ends at 7 or 7:30 p.m. Andy does a
little better by getting home at 6 p.m. or 6:30 p.m. We do that
six days a week. In the winter we end at noon on
Saturdays,” Alan says.
Alan and Mary Ann have two sons and a daughter. The second
son, a landscape architect, worked in the business for a time,
but decided he wanted to work in another field. He returns to
pitch in on Saturdays when they get into a jam. Their daughter
has had limited exposure to the business. Both Andy and his
brother have two sons. Andy’s son, who is 12 years old,
already helped out on a steady basis this summer, assisting on
irrigation jobs. “He was basically my slave and
gopher,” Andy jokes. “I handle all the irrigation and
he helped me with that.”
Enjoyed the Family Business
Andy is grateful he was able to grow up in a family business.
“It’s really good for my kids to grow up in a family
business. I think that’s one of the problems with society
right now. Kids today can’t help but not have a work ethic.
When I was a kid, every one either grew up on a farm or their
parents owned a business. Whether they go on in the business or
not, there are super-important life lessons to learn in a family
business.”
Mary Ann has also found it rewarding. “Having Andrew
back and his brother for a time, and now grand kids in and out,
has been the greatest part of running a business; being able to
spend time with my family members. If we didn’t have this
business, I’m not sure either of the boys would have come
back to this area to live.”
Alan, about to turn 63, has altered his dream of more
locations in rural Illinois. And as Andy prepares to take over,
he says growth for the sake of it doesn’t interest him.
He’d rather become more productive with his crews and
become even more profitable. Both would like to have employees
who see the opportunity and are more interested in personal
career growth.
“We need to have people who can take Andy’s place
so he can take my place. I want to take my four grand kids
fishing sometime,” Alan says.
One thing is clear: Alan is grateful to have his son at his
side building Skoog Landscape & Design. “Without him,
the business would not be operating. He’s been in the
business almost since he was in diapers. I took him with me when
he was four. He’s turned out to be a truly outstanding
man.”
From:
Pro Magazine |